Bestway (NASDAQ:BSTW)
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Bestway, Inc. Announces Fiscal 2004 Fourth Quarter and Year End
Results
Same Store Revenues Increase 7.1%; Eight Consecutive Quarters of Increased Same
Store Revenues
DALLAS, Oct. 8 /PRNewswire-FirstCall/ -- Bestway, Inc. (NASDAQ:BSTW), today
reported financial results for its fourth quarter and full year ended July 31,
2004.
For the three months ended July 31, 2004, revenue increased 7.9% to $9,845,031,
compared to $9,125,742 for the fourth quarter of last year. Same store
revenues (revenues earned in stores operated for the entirety of both periods)
increased 7.1% in the quarter. Net earnings, after a charge of $43,649 for a
legal matter currently on appeal, decreased to $54,078, or $.03 per share on a
diluted basis, compared to $94,553, or $.05 per share on a diluted basis, a
year ago. Without this significant item, net income would have been $97,727, or
$.05 per share on a diluted basis.
For the full year ended July 31, 2004, revenue increased 6.8% to $37,916,130,
compared to $35,506,828 for the same period of 2003. Same store revenues
increased 6.4% for the year. Net earnings for the full year increased to
$365,801, or $.20 per share on a diluted basis, compared to $47,588, or $.03
per share on a diluted basis, last year.
"People, products and programs continue to be our primary focus," commented
David A. Kraemer, President and Chief Executive Officer. "Focusing on these
key drivers and initiatives, along with a targeted marketing campaign has
allowed us to continue our momentum through 2004 and into 2005. Results from
these initiatives are encouraging, which I feel is a testament to our team's
ability to execute our plan. In fiscal 2005, we intend to grow our store count
through new store openings, as well as seek out acquisitions that meet our
return on investment criteria."
Bestway, Inc. owns and operates a total of sixty-nine rent-to-own stores
located in the southeastern United States. These stores generally offer high
quality brand name merchandise such as home entertainment equipment,
appliances, furniture and computers under flexible rental purchase agreements
that generally allow the customer to obtain ownership of the merchandise at the
conclusion of an agreed upon rental period.
This press release and the guidance above contain various "forward-looking
statements" that involve risks and uncertainties. Forward-looking statements
represent the Company's expectations or beliefs concerning future events. Any
forward-looking statements made by or on behalf of the Company are subject to
uncertainties and other factors that could cause actual results to differ
materially from such statements. These uncertainties and other factors
include, but are not limited to, (i) the ability of the Company to open or
acquire additional rental-purchase stores on favorable terms, (ii) the ability
of the Company to improve the performance of such acquired stores and to
integrate such opened or acquired stores into the Company's operations, (iii)
the impact of state and federal laws regulating or otherwise affecting rental-
purchase transactions, (iv) the impact of general economic conditions in the
United States and (v) the impact of terrorist activity, threats of terrorist
activity and responses thereto on the economy in general and the rental-
purchase industry in particular. Undue reliance should not be placed on any
forward-looking statements made by or on behalf of the Company as such
statements speak only as of the date made. The Company undertakes no
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, the occurrence of future events or otherwise.
BESTWAY, INC.
SELECTED BALANCE SHEET DATA
(Unaudited)
July 31, July 31,
2004 2003
Cash and cash equivalents $692,476 $305,869
Prepaid expenses and other assets 243,619 234,908
Rental merchandise, net 13,946,095 13,858,064
Property and equipment, net 2,235,985 2,732,798
Total assets 19,375,622 20,002,168
Accounts payable 606,009 751,328
Debt 8,433,907 9,451,299
Total liabilities 10,657,088 11,683,375
Stockholders' Equity 8,718,534 8,318,793
BESTWAY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Twelve Months Ended
July 31, July 31,
2004 2003 2004 2003
Revenues:
Rental and fee income $9,499,352 $8,822,282 $36,203,299 $33,618,007
Sales of merchandise 345,679 303,460 1,712,831 1,888,821
9,845,031 9,125,742 37,916,130 35,506,828
Cost and operating
expenses:
Depreciation and
amortization:
Rental merchandise 2,046,671 1,775,910 7,490,990 6,868,366
Other 294,155 353,341 1,228,166 1,480,329
Cost of merchandise
sold 255,376 233,743 1,241,408 1,681,771
Salaries and wages 2,847,441 2,744,668 11,053,364 10,433,146
Advertising 379,547 370,239 1,725,515 1,649,104
Occupancy 614,022 595,167 2,500,809 2,383,807
Other operating
expenses 3,176,752 2,734,544 11,500,903 10,255,610
Interest expense 128,372 175,269 545,986 694,185
Loss (gain) on sale
of property
and equipment 5,082 (2,741) 31,820 (9,827)
9,747,418 8,980,140 37,318,961 35,436,491
Income before income
taxes 97,613 145,602 597,169 70,337
Income tax expense 43,535 51,049 231,368 22,749
Net income $54,078 $94,553 $365,801 $47,588
Basic net income per
share $0.04 $0.06 $0.22 $0.03
Diluted net income per
share $0.03 $0.05 $0.20 $0.03
Weighted average common
shares outstanding 1,683,272 1,677,972 1,681,289 1,669,955
Diluted weighted average
common shares
outstanding 1,837,321 1,828,226 1,823,286 1,774,409
DATASOURCE: Bestway, Inc.
CONTACT: Beth A. Durrett, Chief Financial Officer,
, or David A. Kraemer, President and Chief Executive
Officer, , both of Bestway, Inc., +1-214-630-6655